CRM

Strategy
Used In
FMCG
Under the
Guidance of:
Submitted By:
Ms. Nitika
Faisal Alvi &
Aggarwal
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 Roadmap to the Presentation
About FMCG
Market Overview
Indian FMCG Market segment
CRM
Advantages of CRM
Why has B2C CRM become popular with FMCG companies?
CRM works
5 Best CRM Software On Global Level
10 Best CRM Software Systems in India
Pitfalls of a CRM Strategy
Kapture
Assessment On Ground Level
Market Structure effect on Loyalty
Brand Specific effect on Loyalty
CRM Application Strategies

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 FMCGCG?
FMCG or the Fast Moving Consumer Goods industry is also known as the CPG
(Consumer packaged goods) industry in India.

This industry is named so because goods are produced, distributed, marketed and
consumed within a short span of time.

FMCG products mainly include; detergents, tooth cleaning products, soaps,

cosmetics, shaving products, paper products, glassware, batteries, plastic goods and
bulbs.

FMCG Industry is characterized by a well established distribution network, low

penetration levels, low operating cost, lower per capital consumption and intense
competition between the organized and unorganized segments.

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 Market Overview
The Indian FMCG sector is the fourth largest sector in the economy.

The industry is growing between 10 to 12 per cent annually.

The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2016.

The Indian FMCG industry represents nearly 2.5% of the countrys GDP.

A well-established distribution network spread across six million retail outlets including two
million in 5,160 towns and four million in 627,000 villages.

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Indian FMCG market segment

2% Baby Care 2%
12%
22%
Fabric Care 12%
Food Products 43%
Hair Care 8%
5%
Household 4%
4%
OTC Products 4%
4%
43% Others 5%
8%
Personal Care 22%

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 CRM
Customer relationship management(CRM) is an
approach to managing a company's interaction with
current and potential future customers.
It tries to analyze data about customers' history with a
company and to improve business relationships with
customers, specifically focusing on customer retention
and ultimately driving sales growth.

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 Advantage of CRM in FMCG
sector
Understanding customers behaviors.

Effective communication.

Gaining market insight to accelerate innovation process

Develop customer center process

Creating competitive advantage

Customer satisfaction

Customer retention and loyalty

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 Why has B2C CRM become popular with FMCG companies?
Growing of few large retail industry.

Falling brand recognition versus increasing price consciousness: The success of large discount
chains in introducing private labels has resulted in a drop in brand recognition and an increase in price
consciousness.

Emerging of new sales channels: E-commerce portals taking online orders and doing a home delivery
had raised the customers expectation and so the challenge for manufacturers striving for success on e-
markets lies in strengthening brand awareness and customer relations has also increased.

Decreasing efficiency of traditional advertising and marketing initiatives: The number of

marketing campaign has increased and thereby increasing the expenditure in advertising in order to
improve market presence and brand awareness. This is coupled with a constant decline in efficiency of
the traditional marketing due to diversified media channels. So in other words the advertising
expenditures has increased currently as compared to 10 years down the line.

Need for marketing accountability: In a business level as the competition is growing there is a need
to decrease the margins which requires cost cutting and at the same time the expenditure in advertising
and mass campaign has increased.
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 Some examples of CRM are:

Setting up call centers to address customer complaints. The system

generates regular reports that keep the management aware of routine and
evolving consumer concerns, with management reviews undertaken
routinely.

Having consumer panels regularly review and validate the reportfor

every brand in the portfolio, testing a hypothesis based on feedback from the
sales force, organizing focus group discussions in order to validate a
hypothesis or to supplement the findings of a syndicated research.

Launching targeted catalogue s/newsletters.

Using the internet as an fast, economic but effective way for

consumer researchand customer interaction.
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 CRM works
Essentially, CRM works by collecting leads or consumer information, analyzing the
collected information to understand customer or market requirements and adjusting
marketing campaigns accordingly to increase sales.
CRM also serves customer service and support divisions--making businesses efficient
and improving customer satisfaction.

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 5 Best CRM Software On Global Level
1. Pipeline has features that give users the ability to manage activities in an effective
way. This program is designed with highly advanced tracking tools that help
marketers create strategies so that valuable deals can be closed on time.
2. Infusionsoft is award-winning software and is used by over 125,000 businesses
throughout the United States. This program helps companies succeed by capturing
leads, boosting sales, and enhancing different aspects of the e-commerce
process.
3. Salesforce is the World's best customer relationship management platform for
large companies that have many employees. Their complete business suite of
applications is specially tailored to sales, marketing and service industries. They
have a wide range of CRM tools and applications that help businesses keep track of
their sales contacts, retail sales and patient records.
4. Zoho is an operating system for business. It contains customer relationship
management module, clean and ad-free mail, context-aware help desk,
smart accounting, and a function allowing for building custom apps.
5. PunchH is a platform that engages restaurant and other customers through loyalty
programs. In addition to that, it allows users to fill instant surveys, get gift cards,
order online, write reviews, and give social referrals.
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 The Top 10 CRM Systems in India
Oracle

SAP CRM

Microsoft Dynamics CRM

Salesforce.com

Sage

Pivotal from CDC Software

Talisma

Amdocs from Clarify

SugarCRM

Impel CRM
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 Pitfalls of a CRM Strategy
There are potential downsides to investing in an expensive CRM system.
The technology is ultimately only as good as the data it holds. Here are
some potential pitfalls of CRM systems as David Taber, author
ofSalesforce.com Secrets of Success(2009), wrote in an article in
ComputerWorld.com.

"Even with all the most marvelous features, a CRM system without real
users and real customer-facing data is just an empty shell," Taber writes

The more users, the more data that will be entered. So you need to
encourage user adoption or else your data will be waste.

Ensuring data quality will take time and, maybe, money, to police.

Integration into your other systems is essential and "it won't be as easy
or inexpensive
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as the initial CRM project," he writes. 14
 Kapture
KAPTURE is your one-stop solution to automate all your business
processes.

What sets KAPTURE apart is that its a Mobile-first Platform,

Mobile CRM Software with an amazingly user-friendly interface,
reducing hardware costs by 80%. When all your data is secured
on the cloud, you know you can access it anytime, anywhere
effortlessly which invariably increases productivity by 75%.

Apart from that, itsfully-customizableto adapt to different

business processes and models pertaining to different
organizational working styles.

Managing all your leads all on a single platform to generating15

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Assessment On Ground
Level
Baseline loyalty program
Customer Value
How Do We Define Baseline Loyalty
Program
Homogeneity of FMCG product features renders the
consumer price-sensitive and promotion-sensitive.

FMCG marketers reliance on powerful retailers like Wal-

Mart and Carrefour to get in touch with customers.
Therefore, the attitudinal loyalty derived by FMCG
marketers will be crucial to cultivate consumer loyalty

The low need for consumer service in most FMCGs makes

the intrinsic need of relationship between FMCG brands
and consumers.
Market Structure effect on Loyalty
Level of risk (Higher the risk, more loyal towards satisfying
brands)

Involvement of consumer (the more involved, the more rational to

stay loyal and less reactive to promotional campaigns of new
brands)

Self Image Projection (the more image driven, more consistent

with brand)

Sense of belongingness to community(more loyal to stay with

brand linked with certain community)
Brand Specific effect on Loyalty
Unique features

Dominance of market leadership

Coverage of national distribution

How To Define Customer Value?
Lifetime economic value of a heavy user,
currently using or not using the brand

Calculation of magnitude of customer value

Customer Value of heavy user = (Gross

margin*Annual Volume consumed by heavy
user*Expected no. of years of customer life)-
Cost of CRM to reach heavy user
CRM Application Strategies
 Case Of Bat In
Romania( Land Of
Vampires)
Background Challenges CRM Application Result
Low average income Establishing a strong Databases were obtained
by running promotions in Sales nearly doubled in
High percentage of consumer base among
target customers, nightclubs frequented by 2 years
smokers
young professionals target group The product remains
People smoke to show
with above average Free products were high in both terms of
off
income offered to those willing to Customer value and
Product is priced at share their personal loyalty
100% premium over Position the brand as a
details and e-mail Personal
regular ones premium one and address
justifying the price of it communication played
Sold at same places Users are placed on an important part
like regular brands, loyalty system receiving
even tobacco was info about new offerings,
identical to regular info about new
ones promotions, night life
Packaging was events, free samples and
networking opportunities
premium aspect of it
Pamper Diapers Running
Dry In Middle East
Background
P&G was market leader in
diaper category in middle east
with pampers enjoying 50% of
market share
Before Pampers, people
werent using diapers majorly
Loyalty of product was initially
high
As people becomes
accustomed, they begin to look
for competitive price
Factors like image, network
effects were negligible
Challenges and
Opportunities
To retain the market share and
establishment of market leader
Keeping high margins while
educating consumers
Opportunity for differentiating
is low
Customer value is high
Margins are high(100%-200%)
Can cross sell to satisfied
consumers
CRM Applications
Employs middle-aged women
to visit new mothers in
maternity wards and offer
information as baby
consultants
Parents unaware of fact that
they are from P&G strike long
term trust and friendship with
them
Method helps to not only sell
diapers but other P&G baby
care products as well
Results
Probability of parents starting
with pampers increased to 50%
Each heavy user spends $2000
yearly which helps with
salaries of middle aged women
Cross selling increased due to
trust
 How to Choose Perfect CRM for any
Business

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